TEL's CSR

At Tokyo Electron(TEL), we believe it is essential to fulfill our corporate responsibilities toward attaining a sustainable society. Based on this conviction, we strive to build stakeholder trust, solidify a sound management foundation, and create new value through operations.

TEL considers CSR to be the embodiment of its Corporate Philosophy, which has been firmly upheld since its founding. We pursue sustainable operations from the viewpoints of corporate governance, legal and regulatory compliance, and business ethics while creating new value through our products and services. Based on these efforts, we implement CSR activities to help address social issues. We will continue to pursue CSR activities to build stakeholder trust, improve corporate value and, by doing so, promote the growth of a sustainable and dream-inspiring society.

Corporate Philosophy

Stakeholder Communication

Building firm stakeholder trust is essential to raising corporate value. To help stakeholders more deeply understand the progress of its business initiatives and the future direction of its business, TEL discloses highly transparent information in a fair and timely manner through regular briefings and its corporate website. We also work to accurately understand the opinions and demands of stakeholders and to reflect these in our business activities through dialog, surveys, and designated contact points. We will continue to actively promote stakeholder engagement, using it to appropriately inform decision making in the course of everyday business activities, and thus further raise corporate value.

Stakeholders

Key communication methods

Key opinions and requests

Key relevant material issues

Shareholders/Investors

・Earnings announcement ・ESG surveys ・Interviews

・Medium to long term outlook and measures for improving performance ・Corporate governance leading to medium to long term growth・Initiatives for reducing environmental impact

・Invigorating people and workplaces・Establishing a sustainable management platform

Governments/Associations

・Industry group activities・Collaboration with various initiatives

・Creation of innovation leading to the resolution of social issues ・Initiatives for respect for human rights ・Responsible procurement

・Enhancing product competitiveness・Invigorating people and workplaces・Establishing a sustainable management platform

* STQA: Supplier Total Quality Assessment

Participation in International CSR Initiatives

TEL is a member of the UN Global Compact, a global CSR initiative, and the RBA*. We comply with these initiatives, codes of conduct, and principles in areas regarding such issues as human rights, labor, environment, safety and health, ethics and corruption prevention. By doing so, we strive to maintain a sustainable management platform.

* The RBA, formerly known as the Electronic Industry Citizenship Coalition (EICC®), was rebranded to the current name in October 2017.

United Nations Global Compact

The United Nations Global Compact (UNGC) is an international framework for encouraging businesses and other entities to assume a leadership role in the four areas of human rights, labor, environment, and anti-corruption, so they can act as responsible and creative members of society and take the initiative toward achieving sustainable growth. Tokyo Electron announced participation in the UNGC in 2013, embracing the ten principles of the Compact.

Responsible Business Alliance (RBA)

The Responsible Business Alliance (RBA) consists of leading electronics companies dedicated to promoting CSR in their supply chains. The RBA has a common Code of Conduct governing such areas as labor, environment, safety and health, and ethics. Tokyo Electron joined the alliance in 2015, and has been taking measures to improve sustainability of its supply chain ever since.

* The RBA, formerly known as the Electronic Industry Citizenship Coalition (EICC®), was rebranded to the current name in October 2017.

TEL's Initiatives as an RBA member

In June 2015, TEL joined the RBA, an industry consortium that addresses global CSR challenges. To ensure that our business practices in the fields of labor, health and safety, environment and ethics are in full compliance with the RBA Code of Conduct, we have put in place a comprehensive management system for our CSR initiatives. We are also collaborating with other RBA members and experts to create a business environment conducive to the industry-wide fulfillment of CSR.

TEL has an internal ethics code and related policies that are designed to comply with the relevant laws and regulations of the countries concerned, various international standards, and the RBA Code of Conduct. The company also periodically ascertains the progress of its initiatives by evaluating its business processes. Specifically, we use the self-assessment questionnaire (SAQ) format provided by the RBA to assess performance and correct any problems, both at our corporate headquarters and our major locations worldwide.

The results of the assessment are periodically reported to the presidents of the local group companies, and the corporate management team monitors the group-wide measures for improvement as well as the progress and problems of each initiative. Once key issues have been identified, the CSR Promotion Administration Division and related divisions periodically monitor the corrective process to ensure business operation improvement.

Thanks to these measures, no human rights violations, such as child labor or forced labor, occurred at TEL in fiscal year 2017, and no ethical risks to the soundness of its ongoing business operations were found.

TEL Group will continue to improve its operations in compliance with the RBA Code of Conduct, and resolves to engage in socially responsible activities and to promote CSR throughout the industry.

Third-party Recognition

TEL's medium to long term initiatives to increase its corporate value have been recognized by world-leading socially responsible investment (SRI) institutions.In fiscal 2017, TEL was selected for inclusion in the DJSI*1 Asia Pacific 2016, MSCI World ESG leaders Index*2 and the Bronze Class distinction in the RobecoSAM Sustainability Award 2017. Furthermore, we were once again selected as a constituent of the UK-based FTSE Group's FTSE4Good*3 Global Index.

*1 DJSI (Dow Jones Sustainability Indices): Environmental, social and governance (ESG) investment indices developed by U.S.-based S&P Dow Jones Indices LLC and Switzerland-based RobecoSAM AG.The Asia Pacific index covers companies in that region.*2 MSCI World ESG Leaders Index is a member of the MSCI Global Sustainability Index series which were developed by Morgan Stanley Capital International (MSCI) and are globally recognized indices for socially responsible investment (SRI).*3 FTSE4Good: An index related to environmental performance and corporate social responsibility developed by the UK-based FTSE Group